Part I
By Adrian Evarkiou, Sierra Consulting Group, LLC

In our current market condition, many commercial real estate professionals have or will be dealing with a distressed asset. Dealing with distressed assets is not clean or pleasant and in the current market, almost all will end up in foreclosure. Many hear the word “receivership” and think it will be an ugly situation, but there are and can be positive sides of receivership if you are dealing with a professional who knows how to make the most out of the situation.

What is a Receiver?

As receivers, we always approach it as a neutral party; we are able get past the emotion of the situation and evaluate the situation from all angles. The main duty of the receiver is to protect the assets — to become the de-facto property manager—and recover as much value as possible for both the bank and the debtor. In some cases the receiver will just focus on rent collection, but in many cases they work to maintain or increase the value of the asset and to help the debtor to stop incurring more debt.

If you would like more information on the services a receiver provides and how we may be able to assist you, do not hesitate to call us at 602-424-7001. Stay tuned for our next installment on receiverships about untangling the complexity of these situations.